The Politically Incorrect Guide to Capitalism

2.47 MB·English

by  Robert P. Murphy

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P I G
olitically ncorrect uide™
CaThe pitalistom
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P I G
olitically ncorrect uide™
The to
Capitalism
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Robert P. Murphy, Ph.D.
Since 1947
REGNERY
PUBLISHING, INC.
An Eagle Publishing Company (cid:129) Washington,DC
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Copyright © 2007 by Robert P. Murphy
All rights reserved. No part of this publication may be reproduced or transmitted
in any form or by any means electronic or mechanical, including photocopy,
recording, or any information storage and retrieval system now known or to be
invented, without permission in writing from the publisher, except by a reviewer
who wishes to quote brief passages in connection with a review written for inclu-
sion in a magazine, newspaper, or broadcast.
Library of Congress Cataloging-in-Publication Data
Murphy, Robert P., (Robert Patrick), 1976–
The politically incorrect guide to capitalism / Robert P. Murphy.
p. cm.
Includes index.
ISBN 978-1-59698-504-9
1. Capitalism—United States. 2. United States—Economic policy. 3. United
States—Economic conditions. 4. Free enterprise. I. Title.
HB501.M88 2007
330.12'2—dc22
2007001846
Published in the United States by
Regnery Publishing, Inc.
One Massachusetts Avenue, NW
Washington, DC 20001
www.regnery.com
Distributed to the trade by
National Book Network
Lanham, MD
Manufactured in the United States of America
10 9 8 7 6 5 4 3 2 1
Books are available in quantity for promotional or premium use. Write to Direc-
tor of Special Sales, Regnery Publishing, Inc., One Massachusetts Avenue NW,
Washington, DC 20001, for information on discounts and terms or call (202) 216-
0600.
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This book is dedicated to my father,
whose subscription to the
Conservative Chronicleand daily
listening to Rush Limbaugh
got me interested in
free market capitalism.
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CONTENTS
Quiz: Are You a Capitalist Pig? xi
Chapter 1: Capitalism, Profits, and Entrepreneurs 1
So what is capitalism, anyway?
Laissez-faire versus regulation
Free to starve?
Mass production for the masses
Central planning versus the “anarchy” of production
We won the Cold War! Or did we?
Chapter 2: The Price Is Right (By Definition) 9
Prices are signals
The big fuss over “Big Oil”
Running out of gas...
Rent control (or, How to destroy a neighborhood)
Chapter 3: Labor Pains 17
Baseball players make more than teachers!
Where are our priorities?
Even bad CEOs deserve the big bucks
Child labor laws are unnecessary
The minimum wage (or, How to create
unemployment)
Unions hurt the working man
Give me a break!
Chapter 4: The Case against Anti-discrimination Laws 29
The free market’s “racist fee”
Discrimination is bad for business
The “discriminating” customer
Private property and the freedom of association
There’s nothing “affirmative” about affirmative action
So everything’s hunky-dory?
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Contents
Chapter 5: Slavery: Product of Capitalism or of Government? 41
Government protects slavery
Slavery was declining before state interference
Slavery: Immoral, yes, but also inefficient!
The rising price of slaves
If slavery is so inefficient, then why did it exist at all?
Chapter 6: How Capitalism Will Save the Environment 49
Rhinos versus cows
Conservation for whom?
We’ll cross that bridge when we get to it
The ultimate bet: Ehrlich bombs
Recycle? Or dump?
The pollution of activist government
Chapter 7: Ensuring Safety: The Market or Big Brother? 61
There’s always a trade-off...
Market safety
The regulators: Third-party guarantors
Is there a doctor in the house?
Safety: Taking it to the streets
Good intentions with deadly consequences
Chapter 8: Settling Debts 79
Deficits don’t cause inflation
Deficits crowd out private investment
Raising taxes isn’t “responsible”
Burdening our grandchildren?
Reagan’s record
Clinton’s budget
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Contents
Chapter 9: Money and Banking 85
Barter is barbarous
Nobody invented money
We’re from the government and we’re here to help
Printing more money makes prices rise
Banking basics
“Wildcat” banking
Chapter 10: Growing Pains 97
The business cycle: Courtesy of the government
The “progressive” Herbert Hoover
The New Deal didn’t fix the Depression
Did World War II get us out of the Depression?
The whole is not the sum of the parts
A (government) penny spent is a penny earned
Chapter 11: Bread and Circuses: Popular Government Programs 115
NASA: Needlessly dangerous
Outer space: Too big for the private sector?
Capitalists: Just out for a buck?
LBJ’s war on taxpayers
Sacrosanct Social Security
Chapter 12: Running Government Like a Business 127
Profits versus bureaucracy
Amtrak
Going postal over poor service
Public utilities
Government in a jam
Chapter 13: Trusting the Feds on Antitrust 137
The myth of the robber barons
The infamous case of Standard Oil
The case against antitrust
The case for Microsoft
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Contents
Chapter 14: Trade Wars 147
Tariffs are taxes on Americans
Protecting jobs?
Classical wisdom
Debunking the deficit
The trade deficit: Follow the money
Chapter 15: Making Money in the Global Village 159
Manufacturing a crisis
Outsourcing destroys jobs?
Outsourcing makes America richer
The high-tech sector: Another phony crisis
Capital export is a capital idea
We’re from the world government and we’re here to
help
Chapter 16: The Investor Class: In Other Words, You and Me 173
Interest: Sooner is better than later
The importance of middlemen
The farsighted speculator
Futures and other derivatives: To each according to
his ability...
Raiders of the lost corporation
A Twelve-Step Plan for Understanding the Free Market 185
Acknowledgments 187
Notes 189
Index 195